Delegation of Information Gathering and Investment Decisions

This project examines how contracts should be designed when an investor, a "principal", delegates the collection and assessment of information relevant to investment decisions to a specialist, an "agent".

Project manager:

Assar Lindbeck

Normally, such contracts contain bonuses for successful investments, while it is very rare that the contracts are designed so that the agent becomes liable to pay the principal when this fails. One question that will be analyzed is to what extent this restriction affects how an optimal contract should be designed.

Collaborating with others is essential for IFN as a research institute. Our researchers co-author articles with colleagues from other institutes, and many also teach at various universities and colleges.

As part of our extensive program of guest researchers, leading international researchers visit the institute. The visitors present and pursue their research as well as interact and cooperate with researchers at IFN.